Since its founding in 1985, the New York State Association of Small City School Districts (NYSASCSD) has been a steadfast advocate for New York’s small city schools, championing equity in education, ensuring that small city districts receive fair treatment under state law and bringing unique small city issues and solutions to policy and lawmakers. Over the decades, the Association has driven landmark legislative victories, advanced critical litigation, and secured millions in state resources for its member districts.

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Legislative and Policy Milestones

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Debt Limit Reform: After decades of inequity, NYSASCSD successfully navigated the removal of the restrictive 5% constitutional debt limit on small city districts through strategic partnerships and the legislative and legal requirements to get the issue to voters. On November 4, 2023, voters approved the 2023 referendum, amending the NYS Constitution, and the Governor signed legislation (Chapter 596 of 2023) establishing a 10% statutory debt limit—placing small city districts on equal footing with their neighboring districts.

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Inclusion of State Aid in Debt Calculations: As of August 2025, the Association is on the cusp of securing legislation (S.3367/A.2318) that allows small city districts to deduct state aid from debt calculations, a right long afforded to other districts.

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Special Services Aid: In 2002, the Association won dedicated support for Albany, Amsterdam, Troy, Newburgh, and Niagara Falls—districts remaining outside of not served by BOCES. Today, for the two small city districts that remain outside of BOCES, Albany receives $1.32 million annually and Newburgh receives $5.22 million under this aid provision.

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State Aid Reforms: For five consecutive years, NYSASCSD’s proposals were included in the education funding formula within influenced the State Budget, driving significant increases in aid for high-need, lower-wealth districts.

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Real Property Tax Reform: The Association’s “Basic Shelter Exemption” concept directly informed the Governor’s STAR program, providing relief to homeowners across New York.

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IDA Reform: The Association authored Chapter 356 of the Laws of 1993, mandating the sharing of PILOT payments with school districts and ensuring district representation on IDA boards—generating tens of millions of dollars in additional revenue annually.

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HURD Aid: In 1987, NYSASCSD preserved $100 million annually in HURD Aid, later freezing its phase-out from 1994 to 2007. This effort cumulatively saved districts hundreds of millions in state revenue.

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Litigation and Advocacy

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Campaign for Fiscal Equity (CFE): The Association filed multiple amicus briefs in support of the landmark CFE case, which ultimately established Foundation Aid.

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Maisto et al. v. State of New York: Since 2008, NYSASCSD has supported plaintiffs in this critical adequacy case. In 2017, the Appellate Division found that the State violated its constitutional responsibility to provide a sound basic education. The case now proceeds in the remedy phase, where consultants have detailed the true cost of education in small city districts.

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NYSASCSD v. State of New York (2005): The Association filed a lawsuit for finance reform.  Though dismissed on procedural grounds, the case underscored the urgency of reform and strengthened subsequent litigation.

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Rockefeller Institute Study (2024): The Association’s testimony and data, alongside the expertise of Dr. Bruce Baker, were repeatedly cited in the Institute’s final report, validating long-voiced concerns with the Foundation Aid formula.

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Governance and Member Support

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From 1986 to 1995, the Association successfully opposed annual attempts to impose budget vote legislation, maintaining stability for small city districts.

In response to sweeping governance reforms of 1996 and 1997, NYSASCSD has consistently worked with districts to mitigate the harsh impacts of budget defeats, which occur in small cities at twice the statewide average.

By supporting governance reforms under Chapter 171 of the Laws of 1996, the Association has helped districts achieve the highest possible budget passage rates.

 

SMALL CITY SCHOOL DISTRICTS TIMELINE

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1980s

• 1985 – NYSASCSD founded to champion and prioritize small city school districts’ issues.

• 1987 – Preserved $100 million annually in HURD Aid; later froze phase-out from 1994 to 2007, saving districts hundreds of millions statewide.

• Consistently opposed restrictive budget vote legislation from 1986-1995, safeguarding fiscal stability.

1990s

• 1993 – Authored Chapter 356 of the Laws of 1993, reforming Industrial Development Agencies (IDAs) to ensure PILOT sharing with school districts and district representation on IDA boards. This generated tens of millions in new revenue for schools.

• 1996–1997 – Supported governance reforms under Chapter 171, improving budget passage rates and mitigating the impact of budget defeats. , which occur in small cities at twice the statewide average.

2000s

• 2002 – Secured Special Services Aid for districts not served by BOCES (Albany, Amsterdam, Troy, Newburgh, Niagara Falls). Today, Albany receives $1.32 million annually and Newburgh receives $5.22 million annually.

• 2005 – Filed NYSASCSD v. State of New York to demand school finance reform. Though dismissed on procedural grounds, the case spotlighted inequities and paved the way for stronger litigation.

• 2008 – Joined support of plaintiffs in Maisto et al. v. State of New York, a key adequacy case still active today.

• Filed amicus briefs in the landmark Campaign for Fiscal Equity (CFE) case, which established Foundation Aid. 

2010s

• 2017 – In Maisto et al., the Appellate Division ruled that the State failed to provide a sound basic education to small city districts, advancing the case into its remedy phase.

• Continued advocacy for full funding of Foundation Aid.

2020s

• 2023 – Small City Debt Limit parity: Achieved amending the NYS Constitution, removal of the restrictive 5% debt limit through voter referendum; Governor signed Chapter 596 of 2023 establishing a 10% statutory limit, finally giving small city districts equity with neighboring districts.

• 2024- Provided testimony and data (alongside Dr. Bruce Baker) for the Rockefeller Institute's Foundation Aid study, influencing state policy. 

• 2023–2025 – Advanced state aid reforms, with Association proposals driving aid increases for high-need, lower-wealth districts for five consecutive years.

• 2025 (Pending) – Nearing passage of S.3367/A.2318 to allow small city districts to deduct state aid from debt calculations, closing a decades-long inequity.

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